9103 PM Thu Dec 15 0- - 2: a 35% l B ezto.mheducation.com ll ll will in H . . ...- -. uestion 2 - Chapter 13 PreBuilt Problems Connect Chapter 13 PreBuilt Problems 0 saved Help Save & Exit Submit Check my work Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment, The company has always produced all of the necessary parts for its engines, including all ofthe carburetors, An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd, for a cost of $37 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: 10 points 23,002 Skipped Pe'r Units Unit Per Year Direct materials $ 16 $ 368,000 Direct labor 9 207,000 E] Variable manufacturing overhead 4 92,000 egok Fixed manufacturing overhead, traceable 6* 138,000 Fixed manufacturing overhead, allocated 9 207,000 Total cost $ 44 $1,012,000 l Him *One-third supervisory salaries; twothirds depreciation of special equipment (no resale value). if! Required: Print 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? E 2. Should the outside supplier's offer be accepted? References 3. Suppose that ifthe carburetors were purchased, Troy Engines, Ltd, could use the freed capacity to launch a new product. The segment margin ofthe new product would be $230,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Should the outside supplier's offer be accepted? OYes ONO % 9:03 PM Thu Dec 15 Q a: 35% l B ezto.mheducationtcom Z \"in: pl ll llllll mi um' lllrll'illl Question 2 - Chapter 13 PreBuilt Problems Connect (wail-m Him Chapter 13 PreBuilt Problems 0 saved Help Save & Exit Submit Check my work Troy Engines, Ltd', manufactures a variety of engines for use in heavy equipment, The company has always produced all of the necessary parts for its engines, including all ofthe carburetors, An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd, for a cost of $37 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: 10 points 23,009 Skipped Pe'r Units Unit Per Year Direct materials $ 16 $ 368,000 Direct labor 9 207,000 El Variable manufacturing overhead 4 92,000 egok Fixed manufacturing overhead, traceable 6* 138,000 Fixed manufacturing overhead, allocated 9 207,000 Q Total cost $ 44 $1,012,000 l Him *One-third supervisory salaries; twothirds depreciation of special equipment (no resale value). if! Required: Print 1' Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? E 2' Should the outside supplier's offer be accepted? References 3. Suppose that ifthe carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin ofthe new product would be $230,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? 4' Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $230,000 per year. Given this new assumption, what would be the nancial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? ( Requiredz Required\" > %